Cost of Purchases

[Lu235]

Why is Turbo Tax asking for cost of purchases for 2020 when I'm filling my 2021 taxes?

[LenaH]

We'd love to help you complete your tax return, but need more information. Can you please clarify what purchases TurboTax is asking you about? 

[Lu235]

It's the "Cost of Purchases" you enter to help determine the "cost of goods sold" for a small business.  It says "2020" at the top of the column.  Am I supposed to enter the cost of purchases for 2020 or 2021??

[JamesG1]

Are you using TurboTax Self-employed or a TurboTax Desktop product?  At what screen do you see this question?

I assume the question is asking for 2021 purchases but I would like to see the screen you are asking about.

TurboTax backs into cost of goods sold by this formula:

• Beginning inventory
• plus Cost of purchases
• less Ending inventory
• equals Cost of goods sold

See this help.

[Lu235]

self employed.   It's literally on the page that has you enter "Cost of Purchases)

[ThomasM125]

You need to enter the cost of purchases in 2021 if you are working on your 2021 tax return.